National Oilwell Varco (NOV) was trading 5% lower on Monday morning after the company warned that Q1 revenue would be lower than expected.

After last week’s big move higher, today’s dip produced what is known as a “kicker pattern,” which often signifies a tone change.

NOV announced today that it expected Q1 revenues of $1.8 billion compared to Wall Street estimates of $1.9 billion.

This is due to weakness in three customer segments: subsea production equipment, offshore rigs, and drilling/servicing equipment.

This stock was good, based on the upward trending patterns that were in place. However, we are cautious given that the big move lower may end up signifying a shift in tone.

In all likelihood, the stock is forming a topping pattern. See our weekly chart forecast below.

National Oilwell Varco (NOV) Stock Chart with Weekly Bars

nov national oilwell varco stock forecast research investing_april 2018

For an introduction to cycle analysis, check out our Stock Market Cycles video.

 

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The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

 

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